Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

058bcf5a6f9081ddd85aa4f63bac793b7c7fb89e2917cdbd78e60f75271030b5

United States

- Oil

- Natural Gas

- Natural Gas Liquids

Egypt

North Sea

Total Revenue

5e792ec0a0344d0e70730d67a62ec9af1a66d41503807eddb957be2009b3c846

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

PP&E [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

e982958aff4b706e37bf6633a133223ae371531f581d9ce71c039df5051ff485

U.S.

Total Production Revenues

Total Revenues

4265c7383a9c475e685f9de4d6c2df486a7bd277d06cd365a531488f181f8d62

fe2b32310eac01d30b98366c82cd6d1b06fa11aa66d7317f939caf7d6ddc22fa

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

b1c7e804cf1c8e81ab3361ef82e7b12e371979bc3e8441da99fe4383dd2604c9

Oil, Natural Gas, and NGLs Production Revenues (USD, millions)

Purchased Oil and Gas Sales (USD, millions)

Total Revenues (USD, millions)

Derivative Instrument Gains (Losses), Net (USD, millions)

Gain on Divestitures, Net (USD, millions)

Loss on Previously Sold Gulf of Mexico Properties (USD, millions)

Other, Net (USD, millions)

Lease Operating Expenses (USD, millions)

Gathering, Processing, and Transmission Expenses (USD, millions)

Purchased Oil and Gas Costs (USD, millions)

Taxes Other Than Income (USD, millions)

Exploration Expenses (USD, millions)

General and Administrative Expenses (USD, millions)

Transaction, Reorganization, and Separation Expenses (USD, millions)

Depreciation, Depletion, and Amortization (USD, millions)

Asset Retirement Obligation Accretion (USD, millions)

Impairments (USD, millions)

Financing Costs, Net (USD, millions)

Total Operating Expenses (USD, millions)

Net Income (Loss) Before Income Taxes (USD, millions)

Current Income Tax Provision (USD, millions)

Deferred Income Tax Provision (Benefit) (USD, millions)

Net Income (Loss) Including Noncontrolling Interests (USD, millions)

Net Income Attributable to Noncontrolling Interest (USD, millions)

Net Income (Loss) Attributable to Common Stock (USD, millions)

52547d503bca0bd0933e85f31a5fa1c310ded18e8ca2c1a6b9891d1cb85d7c06

ce839ab9bf82ae3f0d3f7907de51718f4a1947ee23157a53fa1bf35fdf3ec915

APA’s **low cash and cash equivalents** of **$64 million** in Q3 2024 resulted from a combination of cash outflows despite strong operating cash generation. Significant investing outflows—primarily **$930 million** spent to add upstream oil and gas properties—and financing activities, which included **dividends, distributions, and net proceeds adjustments totaling **$580 million**, along with a **$500 million** term loan payment and treasury stock activity, substantially reduced liquidity. Additionally, the company actively reduced its net debt by **$275 million**, further impacting available cash.  **[0001193125-24-252752_d875718dex991.htm:8]** **[0002040266-24-000003_apa-20240930.htm:54]** **[0001193125-24-252752_d875718dex991.htm:8]** **[0001193125-24-252752_d875718dex991.htm:1]** 

Why was Cash and cash equivalents so low in Q3 2024?

The high level of **Assets held for sale** in Q3 2024 was primarily introduced because APA Corporation agreed to sell its **non-core producing properties in the Permian Basin**. This transaction involved classifying these properties as held for sale—valued at **$1,091 million** in total—including **$950 million** in cash proceeds and U.S. oil and gas properties worth **$1.1 billion**. Additionally, an associated **asset retirement obligation of $224 million** was reclassified as a current liability held for sale. This move is part of APA’s strategy to streamline its portfolio and reduce debt.  **[0002040266-24-000003_apa-20240930.htm:6]** **[0002040266-24-000003_apa-20240930.htm:14]** 

Why was Assets held for sale introduced at such a high level in Q3 2024?

The jump in **Total property and equipment, net** in Q2 2024 was driven by several factors. **APA Corporation’s acquisition of Callon** significantly increased its asset base by adding Callon’s property and equipment. In addition, **upstream capital investments of $839 million** contributed further, even as the company managed non-core asset sales. These combined actions led to the marked increase from **$10,038 million** at the end of 2023 to **$14,456 million** in Q2 2024.  **[0001193125-24-190833_d873228dex991.htm:8]** **[0001784031-24-000013_apa-20240630.htm:6]** **[APA_3396134_3]** **[0001193125-24-190833_d873228dex991.htm:1]** **[APA_3396134_1]** 

What drove the jump in Total property and equipment, net in Q2 2024?

The increase in **Long-term debt** in Q2 2024 was primarily driven by the financing actions related to the **Callon Acquisition** and expanded credit facility borrowings. Specifically, the company used a **$1.5 billion 3-year term loan facility** to refinance **$2 billion** of Callon's debt as part of the acquisition process.  **[0001193125-24-190833_d873228dex991.htm:8]** **[APA_3396134_3]**  Additionally, there was an increase in borrowings under the company's credit facilities, where the USD Agreement borrowings rose from **$372 million** to **$395 million**.  **[0001784031-24-000013_apa-20240630.htm:48]** 

Why did Long-term debt increase in Q2 2024?

The spike in Total current assets in Q3 2024 was primarily driven by the introduction of **$1,091 million** in assets held for sale that were not present previously, along with an increase in other current assets from **$765 million** to **$813 million**. This combination significantly increased the total current assets for the period.  **[0002040266-24-000003_apa-20240930.htm:6]** 

What caused the spike in Total current assets in Q3 2024?

d879be7fee4f50bbb7db1b5e767d178fb537b010b4a77df517ee79bb7f1aedb6

The negative net income before income taxes in Q3 2024 was driven by several factors. **Significant impairments** totaling **$1.1 billion**—including **$793 million** from oil and gas property impairments and **$315 million** related to assets held for sale—had a major impact. Additionally, **operating expenses increased** considerably, with higher depreciation, depletion, and amortization, lease operating expenses, and transaction costs (for instance, the transaction costs from the Callon acquisition increased from **$5 million** to **$14 million**) further pressuring the bottom line. Finally, although revenues were relatively flat, they were insufficient to offset these heightened expenses amid weaker commodity prices. These combined factors resulted in a reported loss of **$340 million** before income taxes in Q3 2024.  **[0002040266-24-000003_apa-20240930.htm:39]** **[0002040266-24-000003_apa-20240930.htm:4]** **[0001193125-24-252752_d875718dex991.htm:1]** **[APA_3406619_1]** 

Why was net income before income taxes negative in Q3 2024?

The negative shift in net income was primarily driven by **significant impairments totaling $1.1 billion** (including **$793 million** in oil and gas property impairments in the North Sea and **$315 million** related to assets held for sale in the Permian Basin) and a **$116 million** increase in the net after-tax present value of asset retirement obligations. In addition, **higher operating expenses**—attributable to increased depreciation, depletion, and the impact of the Callon acquisition—also contributed to the deterioration, even though these factors were partially offset by lower income tax expenses.  **[0002040266-24-000003_apa-20240930.htm:39]** **[0002040266-24-000003_apa-20240930.htm:4]** **[APA_3406619_4]** 

Why did net income attributable to common stock turn negative in Q3 2024?

The surge in Q3 2024 total operating expenses was primarily driven by significant impairments and higher operating costs across several areas. **Impairments** alone amounted to **$1,111 million**, including a **$571 million after-tax impairment** for North Sea assets and non-core Permian assets held for sale, where **$325 million** was related to the North Sea. In addition, there were increases in **Depreciation, Depletion, and Amortization (from $418 million to $595 million)**, **Lease Operating Expenses (from $394 million to $418 million)**, and **Gathering, Processing, and Transmission costs (from $89 million to $123 million)**, compared to Q3 2023.  **[APA_3406619_4]** **[0002040266-24-000003_apa-20240930.htm:4]** **[0001193125-24-252752_d875718dex991.htm:7]** 

Why did total operating expenses surge in Q3 2024?

The large deferred income tax swing in **Q4 2023** was primarily driven by the **partial release of the valuation allowance on APA's U.S. deferred tax assets**, which resulted in a **non-cash deferred income tax benefit of approximately $1.6 billion**. Additionally, the swing was affected by the **remeasurement of U.K. deferred tax liabilities** due to the enactment of the **Finance Act 2023**, which increased the Energy Profits Levy rate from **25% to 35%**, leading to a deferred tax expense of **$174 million**.  **[0001784031-24-000003_apa-20231231.htm:151]** **[0001784031-24-000003_apa-20231231.htm:75]** **[APA_3375742_4]** 

Why was the deferred income tax swing so large in Q4 2023?

The **spike** in Gain on Divestitures in Q2 2024 was mainly due to the **net gains from divestitures of non-core assets**, which drove the figure up to **$276 million** compared to **$5 million** in Q2 2023.  **[0001193125-24-190833_d873228dex991.htm:5]** **[0001784031-24-000013_apa-20240630.htm:4]** **[0001784031-24-000013_apa-20240630.htm:36]** 

Why did gain on divestitures spike in Q2 2024?

0dbd15c3b9940f5b05639452c66fcff03e0f34d2adbd38931bab83cfad95a65e

APA Corp (US) (APA)

Financials